Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Microphonics Inc. (mrps) -- Ignore unavailable to you. Want to Upgrade?

To: kbert who wrote (450)	2/26/1999 11:18:00 AM
From: Andrew H	Respond to of 8189

People have checked with the transfer agent regarding the shares outstanding. The total OS is 9.4M. While that would not account for the float, I am confident after talking with the company that their numbers are accurate--give them a call and talk to them.

To: kbert who wrote (450)	2/26/1999 11:28:00 AM
From: Lee Walsh	Respond to of 8189

There is no such thing as a "real" float with bb stocks that are not marginable. When massive buying takes place, MM's sell stock they don't have (naked short) which increases the "effective float" Now this is the gamble they are taking...because if the buying continues, and they get down too far on their positions, they will be forced to cover these naked shorts...which reduces the "effective float" and runs up the price. Most of the MM's who trade in these stocks are "smallish" generally, and don't have the huge capital of a Merrill or Goldman, so their is a "limit" on what they can short. Many times, if they get in "trouble" they will call in a "buddy" MM to help out.... PILL is very well known to do this. These stocks trade differently than Nasdaq where you have to borrow shares to short...here the "shorters" are the MM's, Canadian brokers, and a few select folks who have overseas accounts. And unlike the Nasdaq which has the "uptick" rule, here there is no such rule...if a MM has guts and cash....he can hit the bid and drive the price down all he has a notion too. Lee Edit: Of course "the big unknown" for the MM is: What is the company going to announce next??? Maybe they will announce a cure for cancer the common cold or in MRPS case contracts with who knows what or who??...So most MM's don't like to get too naked...but you will see over and over in BB stocks that spike up quickly...they come down hard, and usually the MM's win....they have too many advantages in my opinion...but they take bigger risks too.